How To Start Trading The Forex Market? (part 3)
10 REASONS TO START TRADING FOREX!
More and a lot of well informed investor and entrepreneurs are diversifying their ancient investments like stocks, bonds & commodities with foreign currency as a result of of the following reasons:
1) FOREX is the most important monetary market in the world.
With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capability of any different market. After all, when compared with the $50 billion daily marketplace for equities or the $30 billion futures market, it becomes quickly apparent this offers you, and countless other FOREX traders, nearly infinite trading liquidity and flexibility.
2) FOREX may be a True 24-hour market.
The FOREX Market never sleeps. Trading positions can be entered and exited at any moment around the world, around the clock, 5.five days a week. There is no expecting an opening bell as within the case of trading stocks. It’s a twenty four- hour, continuous electronic (ONLINE) currency exchange that never closes. This is terribly desirable for you if you want to trade on a part-time basis, as a result of you’ll be able to choose when you would like to trade: morning, noon or night.
3) There is never a Bear Market in FOREX.
You’ll be able to have access to a seamless exchange of currencies. Currencies trade in “pairs” (for example, US greenback vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every currency combine (for example, USD/CHF) is continually moving in relation to the other. Therefore, when you purchase a explicit currency, you’re truly simultaneously selling the other currency in that specific pair. As the market moves, one amongst the currencies can increase in value versus the other. Of course, it’s up to you to choose the proper currency to be long ( to procure) or short( you sold).
4) High Leverage - up to 400:one Leverage.
You’re permitted to trade foreign currencies on a highly leveraged basis - up to four hundred times your investment with Fenix Capital Management, LLC and with some other brokers.
Standard one hundred,000- US$ currency tons will be traded with as little as 0.25% margin, or $250.
Mini FX accounts are permitted to trade with just 0.25% margin, meaning, just $25 allows you to control a ten,000-unit currency position.
Futures traders, who are accustomed to margin necessities typically equal to five-seven%-8% of the contract price, can immediately acknowledge {that the} FOREX market provides abundant larger leverage, and for stock traders, who should post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading , trade the Forex Market.
5) Value Movements would possibly be Highly Predictable.
Currency costs in the FX market typically repeat themselves in relatively predictable cycles, creating trends. The robust trends that foreign currencies develop are a significant advantage for traders who use the “technical” strategies and strategies.
Not like stocks, currencies have the tendency to develop sturdy trends. Over 80% of volume is speculative in nature and, thence, the market frequently overshoots and then corrects itself. As a technically-trained trader, you’ll be able to easily identify new trends and breakouts, to enter and exit positions.
half-dozen) YOU don’t pay commissions or fees to trade FOREX
After you trade FOREX, through Fenix Capital Management LLC (FCM) you’ll be able to do it totally FREE of commissions and costs , no matter your account size.
Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, solely US$ two hundred and they do not charge commissions or fees to trade or to take care of an account, regardless of your account balance or trading volume.
7) YOU don’t must pay trading fees or exchange fees.
There are none of the same old fees, that futures and equity traders are at home with pay:
NO exchange or clearing fees,
NO NFA or SEC fees.
As a result of currencies trade over-the-counter (OTC), via a international electronic network, in FOREX, what you see on your trading screen, is what you get, permitting you to form fast choices on your trades without having to fret or account for fees that will have an effect on your profit/loss or slippage.
In the equity and commodity markets, you want to pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, that in flip lowers transaction costs.
HOW to Forex brokers make money if they do not charge commissions?
Like all traded financial product, over-the-counter currency trading involves a bid/raise unfold, which represents the costs at which your counterpart is willing to trade. Your broker will receive a half of this bid/ask spread.
Because the currency market offers spherical-the-clock liquidity, you receive tight, competitive spreads each intra-day and night. Stock traders can be additional at risk of liquidity risk and usually receive wider trading spreads, especially throughout once-hours trading.
nine) Market Transparency.
Market transparency is extremely desired in any trading environment. The greater the market transparency, the additional economical the market becomes. Unlike different markets where transparency is compromised (like in the various recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and gaining access to real-time analysis / news, is easier than analyzing firms).
Because of this transparency, as an FX trader, you may be able to apply risk management methods in accordance to your fundamental and technical indicators.
10) Instantaneous Order Execution
The FX market offers the very best level of market transparency out of all the financial markets. As a result of of this, order execution and fill confirmation typically occur in simply 1-two seconds.
In Forex, order execution is all-electronic and as a result of you’ll be trading via an Net-based mostly platform, instantaneous execution is routine.
There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )
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Tags: currency trading, foreign currencies trading, foreign exchange, forex, forex market trading, investment, trading
